New Media Investment Technical Analysis (NYSE:NEWM)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. Just by looking at the New Media Investment stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the NEWM stock chart which creates a trading signal.
See New Media Investment bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis essentially tries to study the supply and demand for a particular security and determine the stock trends for that security. Chartists use stock price movements for this form of New Media Investment stock analysis.
New Media Investment Moving Average
Moving averages show the average price of NEWM stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The 20 day moving average of $17.1 is below the last closing price of $17.12 and the 50 day moving average of $16.88 is below the last closing price of $17.12. The 10 and 20 day periods can predict short term moving average trends.
New Media Investment Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the NEWM stock. Currently the stock price of $17.12 is in the upper range of New Media Investment bollinger bands.
New Media Investment Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The New Media Investment MACD indicator is above 0 indicating a bullish trend.
New Media Investment Relative Strength Index
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. If the RSI of NEWM stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.